Jens Fred Sturzenegger last week became the fourth banker to be convicted in Singapore for crimes related to the illegal movements of money that originated from 1Malaysia Development Bhd (1MDB). The 42-year-old Swiss, who was the branch manager of Falcon Private Bank in Singapore, was jailed 28 weeks and fined S$128,000. Falcon is owned by Aabar Investments PJS, a company that belongs to the Abu Dhabi government and that is now involved in a US$6.5 billion dispute with 1MDB.
The charges against Sturzenegger have shed light on what happened at Falcon after more than US$1.265 billion was moved to four accounts at the Singapore branch in March 2013, and from there flowed to other accounts. (The US Department of Justice has said the US$1.265 billion came from proceeds from the US$3.0 billion bonds issued in March 2013 by 1MDB Global Investments Ltd.)
Singapore prosecutors said Low Taek Jho or Jho Low controlled the accounts despite the fact that the beneficial owner was one Eric Tan Kim Loong. The documents produced in court also showed how Falcon’s CEO Eduardo Leeman was worried and unnerved by the billions that came into the bank in such a suspicious manner.
We produce here the full statement of facts brought against Sturzenegger by Singapore’s Attorney-General to enable our readers to know what happened.
Public prosecutor vs Jens Fred Sturzenegger | Statement of facts
INTRODUCTION
BACKGROUND
1st Charge – DAC 900187/2017
“But between you and me, Mohammed, the rest of the documentation, which our friend in Malaysia has delivered is absolutely ridiculous, between you and me. And, you know, we…we have already a bit of history, we have, we have two common cases, which we both know, in all the banks of assets had been blocked by by two of our mutual funds, because of compliance issue. This is exactly that kind of issue, which is gonna get everybody in trouble. This is done not professionally, unprepared, amateurish at best. The documentation they’re sending me is a joke, between you and me, Mohammed, it’s a joke!
This is something, how can you send hundreds of millions of dollars with documentation, you know, nine million here, twenty million there, no signatures on the bill, it’s kind of cut and paste, and, and… I mean it’s ridiculous! You know, I’m, I’m, I’m, I’m so upset, as, as you, as, as you notice, that I’m just about to send the money back to stay sure. I mean, come on guys, get real! You know, so, so, I’m, I’m, I’m, you’re now talking to Jho, and tell him “look, you either, within the next”, you know, “six hours produce documentation, which my compliance people can live with, or we have a huge problem.” And if we accept these funds, look, I’m, I’m not able to hold the horses back, because my compliance guys, they are going to pick up the phone and report it as a suspicious transaction. That’s something we, nobody wants that to happen. But you can imagine where I am coming from? (pause with a clicking sound) What are these guys doing, Mohammed?? What are these guys doing?? I mean, this is, is, is this serious? Or, or do I have to be worried here?”
…the documentation which we have received, Jho, it’s a joke. It is not good and it, it, if you look at all that stuff…I looked at it, I mean with, with, with the best of, of whatever we want to see and with all that Eric and we can do, but let, you know, my compliance guys and even my general counsel, he said, “look, I mean, if an outside person looks at that and we has, we have in particularly hired an outside consultant law firm to look at it from the perspective, if, if anybody just looks at it remotely, this is going to be all over the place. Receiving banks, wiring, and, and, what I try to do here is protect Eric and anybody in the room because if, if any other bank just make “peep!” and this gets reported, we are going to be a h-…we are gonna have a huge problem. And the documentation is not good.
3rd Charge – DAC 900189/2017
5th Charge – DAC 900191/2017
8th Charge – DAC 900194/2017
13th Charge – DAC 900196/2017
16th Charge – DAC 900202/2017
ATTORNEY-GENERAL’S CHAMBERS
SINGAPORE
10 January 2017
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